Gold falls ₹2,600, silver drops ₹4,200: What's driving the sell-off?
What's the story
Gold and silver prices have witnessed a sharp decline of up to 2% in early deals on the Multi Commodity Exchange (MCX) today. The fall comes amid profit-taking and weak global cues. MCX gold October futures fell by over ₹2,600 or nearly 2%, to ₹1,53,640 per 10g. Meanwhile, MCX silver September contracts plunged by over ₹4,200 or nearly 2%, to ₹2,32,501 per kg.
Market impact
Warsh's comments weigh on gold, silver
The continued decline in gold and silver prices is also attributed to comments from US Federal Reserve Chair Kevin Warsh.
He said that the US central bank will "have work to do" if they don't gain sufficient confidence that inflation is moving toward the 2% target.
His remarks have stoked expectations of higher interest rates, which traditionally weigh on gold as they make holding the non-yielding asset less attractive.